Cricket Australia is set to host a press conference at 9:00pm (AEST) on Monday in Bristol where CEO James Sutherland will announce details of a new coaching structure.

Arthur's replacement is unconfirmed, but former Queensland Bulls coach Darren Lehmann has been tipped as a possible successor, having this month coached Australia A to wins in England.

Queensland Cricket acting chief executive Richard Powell told Grandstand that Cricket Australia has confirmed to him the termination of Arthur as coach but has no news on Lehmann as his successor.

"I've spoken to Cricket Australia here in Australia and they've sent through a note saying that Mickey Arthur has been relieved of his coaching position," Powell said.

The decision to dump Arthur comes fresh after Australia's limp showing in the Champions Trophy - the defending champions were eliminated in the group stage - and a 4-0 Test series thrashing at the hands of India.

The Australian team is due to assemble on Monday following the failed Champions Trophy campaign for its first tour match against Somerset, which starts on Wednesday.

The first Ashes Test starts on July 10 at Trent Bridge.

Discipline in the Australian camp has remained an issue throughout Arthur's tenure, with David Warner's Twitter outbursts and a bar-room brawl with England batsman Joe Root the latest indiscretion under Arthur's reign.

Arthur also courted controversy when sending former Test vice-captain Shane Watson, James Pattinson, Mitchell Johnson and Usman Khawaja home midway through the India series.

The players were punished for not completing a homework assignment on how they could improve their performances on tour.

Lack of respect undermined Arthur, says Lawson

Former Australian cricketer and Grandstand commentator Geoff Lawson says he would not be surprised if Arthur is sacked, but says the timing is far from ideal.

"To do it in the middle of a campaign and an incredibly important campaign as far as Australia is concerned, that's an issue," he said.

To do it in the middle of a campaign and an incredibly important campaign as far as Australia is concerned, that's an issue.

Grandstand commentator Geoff Lawson

"That's never been done before. So it would be setting a precedent."

Lawson says the Australian team has been unsettled for some time.

"I think the biggest issue is the discipline within the team and the apparent lack of respect for the coach and repeated problems they're having," he said.

"It's not just the odd bushfire, this is the full catastrophe with the problems they're having. I'm reading between the lines a bit of course but you can tell this has been a very unhappy camp."

Former Test batsman Mark Waugh told Sky News the timing of Arthur's sacking was not good.

"At the end of the day the players have got to be responsible as a well but Cricket Australia are obviously looking for more direction from their coach," he said.

"There's definitely been issues within the squad with team unity and there's a lack of experience there, so it just hasn't been working. It's a very dramatic decision at such an important time.

"It's going to put a lot more pressure on (Test captain) Michael Clarke who has been under enough pressure himself with his back injury. So it's not an ideal situation."

"This is a line in the sand moment. A point we'll look back on in a couple of years' time when we're back to number one in the world and say was a defining moment," he wrote.

"The decision to suspend Shane Watson, Mitchell Johnson, James Pattinson and Usman Khawaja for not adhering to a team request is the defining moment, but it has been a culmination of lots of small minor indiscretions that have built up to now.

"This decision was about sending a strong message that it is about time all players had some accountability for their actions."

Former Proteas coach Arthur was appointed as Australia coach following the Argus Review - ordered after the side's loss in the 2010/11 Ashes home series - after a coaching stint in Western Australia.